In an effort to lower expenses and save the time it takes for the issuance and clearance of government bonds, the Israel Ministry of Finance teamed up with VMware and Fireblocks to carry out a proof of concept for distributing government bonds with the help of blockchain.
The project also intends to increase transparency, simplify procedures, and reduce risks.
Dubbed “Eden” by the government, the project was developed by the account general via the Tel Aviv Stock Exchange (TASE) and the Debt Unit in the financing division.
It’s important to note that the Proof of Concept project will involve digitizing a new series of bonds and distributing them to network entities. Leading foreign and local banks must take part in a “live test” before the bonds may be distributed.
Each bank participating in the test will receive a number of tokenized government bonds via the project platform on their wallet. Following that, the banks are required to send the received digital currency to a wallet address of the Israeli government.
According to TASE CEO Ittai Ben-Zeev, the financial markets are undergoing tremendous shifts in recent years, with the advent of breakthrough technologies that affect how clients globally function and invest.
The Israeli Accountant General further states in response to the announcement that Israel is presently pioneering in offering state bonds using blockchain technologies, alongside TASE.
This will allow Israel to investigate fresh options for the management and issuance of public debt in a safe and controlled framework.
Michael Shaulov, CEO of Fireblocks, expressed his excitement at collaborating with VMware, TASE, and the Israel Ministry of Finance, pointing out that the digitization of the financial system necessitates both public and private cooperation.
